The EU said that the eight had been under investigation since 1999 for collusion to eliminate fair competition for vitamin pills and to overcharge consumers.

"The companies' collusive behaviour enabled them to charge higher prices than if the full forces of competition had been at play, damaging consumers and allowing the companies to pocket illicit profits," Mr Monti said.

The EU halved the fines because the companies cooperated with its antitrust investigation. In addition to Hoffmann-La Roche and BASF, the EC also fined Aventis SA (France), Solvay Pharmaceuticals (the Netherlands), Merck (Germany) as well as Daiichi Pharmaceutical, Esai and Takeda Chemical Industries, all of Japan.

The companies fixed prices in the European market through a cartel that had a "formal structure and hierarchy," including a regular exchange of sales figures and pricing data.

EU investigators found the price fixing started in the vitamin A and E market in the 1990s, then moved to other categories in the European vitamin market, estimated by the EU to be worth 800m euros in 1998.

The EU said La Roche and BASF formed a "common front" to enlist Japanese rivals to their cartel. It said that the involvement of La Roche's most senior executives suggested "the arrangements were part of a strategic plan conceived at the highest levels to control the world market in vitamins by illegal means".

La Roche, which is deciding whether to appeal, has been fined for the same price fixing practices in the US, Canada and Australia. In 1999, it set aside 2.4bn Swiss francs (£1bn) to cover fines. Merck said that it accepted its fine of 9.24m euros as appropriate.

Under EU law, companies found guilty of antitrust practices can be fined up to 10% of their total annual sales. The companies have three months to pay their fines or have the option to appeal to the EU's high court.

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About this article

Vitamin cartel fined for price fixing

This article was published on
the Guardian website
at 07.53 EST on Wednesday 21 November 2001.
It was last modified at 07.53 EST on Thursday 3 January 2002.
It was first published at 07.53 EST on Thursday 3 January 2002.